Retail: Business Rates

Lord Naseby Excerpts

Tuesday 12th February 2013 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government whether, in the light of trading conditions in 2012-13, particularly for independent retailers, they will modify the automatic increases in business rates.

[Lord Naseby]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I should mention that a member of my family works in the retail trade.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)]

My Lords, our commitment to hold business rate rises to the annual retail prices index cap means that there has been no real-terms increase in business rates since 1990. We have provided and are continuing to provide considerable support on business rates, including temporarily doubling the level of small business rate relief for another year. We have also postponed the revaluation of business premises from 2015 to 2017.

[Lord Naseby]

My Lords, that is a half encouraging answer from my noble friend, but is she fully aware that over 3 million people are employed in the retail trade, and that, equally importantly, at least 1 million of them are young people aged under 25? The situation on the high street in the past 12 to 14 months has been dire. Against that background, surely the time has come for Her Majesty’s Government to review the business rates, as it affects retailers and, frankly, for just one year to freeze those business rates?

[Baroness Hanham]

My Lords, the Government are committed to doing all they can to support the high street and other businesses. As the noble Lord made clear, the employment opportunities there are dire at the moment and we want to boost them as much as we can. The high street is facing challenges such as the rise of internet shopping. That is why the Government are offering practical support such as the Portas-plus package, and, as I said, why they have doubled the small business rate relief. We have also given authorities powers to grant their own discounts, which can be used to support local businesses, including shops.